Key to company’s success lies in good advice

Sydney, Oct 2 (IANS) Boards of directors have a significant role in managing and creating value for emerging high performing, high growth firms, according to a study.More than half of the participants surveyed indicated that their boards provide a “very high” or “high” influence on creating firm value through compliance, industry contacts and strategic advice.

The report, released in September by Deloitte and Grow Wellington’s business incubator, Creative HQ, was based on interviews and case studies with more than 300 Deloitte/Unlimited Fast 50 companies to identify common factors in success and specific growth strategies.

Mark Ahn, professor of entrepreneurship at the Victoria University (Wellington, New Zealand), who conducted the study, said much of the attention of boards and directors was on compliance and regulation, but the true value was derived from completing this with contacts and content.

Research results showed that 73 percent of companies had either advisory boards or boards of directors, though only a small number were required to have boards in place.

Ninety-eight percent cited strategic planning as “important” or very “important” roles for board members, and strategy development was ranked twice as important as any other board level activity, said a Victoria University release.

“Supplier, customer and investor networks, together with the experienced and tacit strategic knowledge on advisory boards are all crucial in creating sustainable high performing, high growth companies,” it said.